FILE PHOTO: Apple logo is seen in this illustration taken, August 22, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
LONDON (Reuters) -Apple could be holding back innovation in smartphone browsers, according to a British regulatory report, which recommended that Apple's and Google's duopoly in mobile ecosystems should be investigated with its new powers.
The Competition and Markets Authority (CMA) said on Friday its inquiry group had provisionally found that the mobile browser market was not working well for UK businesses and millions of phone users.
The group's biggest concerns related to Apple's policies on accessing the web on iPhones. It provisionally found Apple's rules restricted competitors from being able to deliver new features that could benefit consumers.
It said many smaller British app developers wanted to use progressive web apps – an alternative way to provide apps to users without downloading them through an app store – but the technology was not able to fully take off on Apple's devices.
A revenue-sharing agreement between Google and Apple had also reduced their incentives to compete in mobile browsers on Apple devices, it found.
The CMA's Digital Markets Unit, set up more than three years ago, has gained new powers to tackle the power of big tech companies with interventions in the market. The new regime is expected to come into force in January.
Apple said it disagreed with the CMA group's findings on its Safari browser and in-app browsing on its iOS operating system
"We are concerned that the interventions discussed in the report for future consideration under the Digital Markets, Competition, and Consumers Act would undermine user privacy and security and hinder our ability to make the kind of technology that sets Apple apart," it said in a statement.
The CMA opened an investigation into the market after it found in 2021 that Apple and Google had an effective duopoly on mobile ecosystems, including operating systems, app stores and web browsers on mobile devices.
Inquiry group chair Margot Daly said issues identified in the report should be looked at by the regulator under its new powers.
The CMA is expected to make a final decision in March.
The independent inquiry group also proposed no further action should be taken on cloud gaming given its main concerns had been addressed.
(Reporting by Paul Sandle and Muvija MEditing by Mark Potter)
